<PAGE>

                           WAREHOUSING SERIES SUPPLEMENT

                            dated as of December 3, 1996

                      amended and restated as of July 21, 1998

                                         to

                             SPREAD ACCOUNT AGREEMENT,

                            dated as of March 25, 1993,

                              as amended and restated

                                as of July 21, 1998

                                       among

                               ARCADIA FINANCIAL LTD.

                         ARCADIA RECEIVABLES FINANCE CORP.

                         FINANCIAL SECURITY ASSURANCE INC.

                                        and

                   NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION,

                         as Trustee and as Collateral Agent


<PAGE>

                                 TABLE OF CONTENTS


<TABLE>
<CAPTION>
                                                                          PAGE
                                                                          ----
<S>                                                                       <C>
WAREHOUSING SUPPLEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . .1

RECITALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

AGREEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

ARTICLE I  DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . .2

     Section 1.1. Definitions. . . . . . . . . . . . . . . . . . . . . . . .2
     Section 1.2. Rules of Interpretation. . . . . . . . . . . . . . . . . .3

ARTICLE II  SERIES SUPPLEMENTS; THE COLLATERAL . . . . . . . . . . . . . . .4

     Section 2.1. Series Supplement. . . . . . . . . . . . . . . . . . . . .4
     Section 2.2. Grant of Security Interest by AFL and the Seller.. . . . .4

ARTICLE III  SPREAD ACCOUNT. . . . . . . . . . . . . . . . . . . . . . . . .5

     Section 3.1. Establishment of Warehousing Series Spread Account . . . .5
     Section 3.2. Release of Funds Upon Repurchase . . . . . . . . . . . . .5

ARTICLE IV  MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . .5

     Section 4.1. Further Assurances . . . . . . . . . . . . . . . . . . . .5
     Section 4.2. Governing Law. . . . . . . . . . . . . . . . . . . . . . .6
     Section 4.3. Counterparts . . . . . . . . . . . . . . . . . . . . . . .6
     Section 4.4. Headings . . . . . . . . . . . . . . . . . . . . . . . . .6
</TABLE>

<PAGE>

                       WAREHOUSING SERIES SUPPLEMENT

          WAREHOUSING SERIES SUPPLEMENT, dated as of December 3, 1996, 
amended and restated as of July 21, 1998 (the "Warehousing Series 
Supplement"), by and among ARCADIA FINANCIAL LTD., a Minnesota corporation 
("AFL"), ARCADIA RECEIVABLES FINANCE CORP., a Delaware corporation (the 
"Seller"), FINANCIAL SECURITY ASSURANCE INC., a New York stock insurance 
company ("Financial Security") and NORWEST BANK MINNESOTA, NATIONAL 
ASSOCIATION, a national banking association, in its capacity as Indenture 
Trustee under the Indenture referred to below, for the Noteholders with 
respect to the related Series (in each of such capacities, the "Trustee") and 
as Collateral Agent hereunder.

                                 RECITALS

          1.  The parties hereto have previously entered into a Spread 
Account Agreement, dated as of March 25, 1993, as amended and restated as of 
June 23, 1998 (the "Spread Account Agreement"), and, as contemplated by 
Section 2.02 of the Spread Account Agreement, this Warehousing Series 
Supplement constitutes a Series Supplement to the Spread Account Agreement so 
that hereafter this Warehousing Series Supplement shall form a part of the 
Spread Account Agreement for all purposes thereof, and all references herein 
and hereafter to the Spread Account Agreement shall mean the Spread Account 
Agreement, as supplemented hereby.

          2.  Pursuant to the Amended and Restated Sale and Servicing 
Agreement dated as of July 21, 1998 among Arcadia Automobile Receivables 
Warehouse Trust, a Delaware business trust (the "Issuer"), Arcadia 
Receivables Conduit Corp. (the "Original Issuer"), a Delaware corporation, 
AFL, Bank of America National Trust and Savings Association, as 
Administrative Agent and RCC Agent, Morgan Guaranty Trust Company of New 
York, as DFC Agent, Norwest Bank Minnesota National Association, as Backup 
Servicer, Collateral Agent and Indenture Trustee, and the Seller (the 
"Warehousing Series Sale and Servicing Agreement"), the Seller intends to 
sell from time to time to the Issuer all of its right, title and interest in 
and to Receivables and certain other Seller Conveyed Property (as defined in 
the Warehousing Series Sale and Servicing Agreement).

          3.  Pursuant to the Amended and Restated Indenture dated as of July 
21, 1998 between the Original Issuer, the Issuer and the Trustee (the 
"Warehousing Series Indenture"), the Issuer is issuing the Warehousing Notes.

          4.  The Seller has requested that Financial Security issue the Note 
Policy to the Trustee to guarantee payment of the Scheduled Payments (as 
defined in such Policy) on each Payment Date in respect of the Warehousing 
Notes.

          5.  In partial consideration of the issuance of the Note Policy, 
the Seller has agreed that Financial Security shall have certain rights as 
Controlling Party, to the extent set forth herein and in the Transaction 
Documents.


<PAGE>

          6.  The Seller is a wholly owned special purpose subsidiary of AFL. 
The Issuer has agreed to pay the amount earned on the Receivables, net of 
certain amounts as set forth in the Warehousing Series Sale and Servicing 
Agreement, to the Seller pursuant to the Warehousing Series Sale and 
Servicing Agreement.  The Warehousing Series Insurer Secured Obligations form 
part of the consideration to Financial Security for its issuance of the Note 
Policy.

          7.  In order to secure the performance of the Warehousing Series 
Secured Obligations, the Seller have agreed to pledge the Warehousing Series 
Collateral as Collateral to the Collateral Agent for the benefit of Financial 
Security and for the benefit of the Trustee on behalf of the Noteholders, 
upon the terms and conditions set forth herein.

                               AGREEMENTS

          In consideration of the premises, and for other good and valuable 
consideration, the adequacy, receipt and sufficiency of which are hereby 
acknowledged, the parties hereto agree as follows:

                                ARTICLE I

                               DEFINITIONS

          Section 1.1. DEFINITIONS.  All terms defined in Section 1.1 of the
Warehousing Series Sale and Servicing Agreement shall have the same meaning 
with respect to this Warehousing Series Supplement. The following terms shall 
have the following respective meanings:

          "COLLECTION ACCOUNT SHORTFALL" means, with respect to the 
Warehousing Series, (I) with respect to any Distribution Date prior to the 
occurrence of an Amortization Event, the excess, if any, of (A) the amount 
required to be distributed on such Distribution Date pursuant to priorities 
(i) through (vi) of Section 4.6(a) of the Warehousing Series Sale and 
Servicing Agreement over (B) Spread Account Available Funds with respect to 
the immediately preceding Deficiency Claim Date and (II) with respect to any 
Distribution Date following the occurrence of an Amortization Event, the 
excess, if any, of (A) the amount required to be distributed on such 
Distribution Date pursuant to priorities (i) through (vi) of Section 4.6(b) 
of the Warehousing Series Sale and Servicing Agreement over (B) the Spread 
Account Available Funds with respect to such Distribution Date.

          "SPREAD ACCOUNT MAXIMUM AMOUNT," with respect to the Warehousing 
Series and any Distribution Date:

          (i) if no Insurance Agreement Event of Default with respect to the 
     Warehousing Series has occurred and is continuing and no Capture Event 
     has occurred and is continuing as of the related Determination Date, is 
     equal to 1.5 percent of the principal balance of the Receivables (as 
     defined in the Warehousing Series Sale and Servicing Agreement); or


                                      2
<PAGE>

          (ii) if (A) an Insurance Agreement Event of Default with respect to 
     the Warehousing Series has occurred and is continuing, or (B) a Capture 
     Event has occurred and is continuing as of the related Determination 
     Date, the Spread Account Maximum Amount shall not be limited.

          "WAREHOUSING SERIES COLLATERAL" has the meaning specified in 
Section 2.2(a) hereof.

          "WAREHOUSING SERIES INDENTURE" means the Amended and Restated 
Indenture, dated as of July 21, 1998 among the Original Issuer, the Issuer 
and the Trustee.

          "WAREHOUSING SERIES NOTE POLICY" means the financial guaranty 
insurance policy issued by Financial Security with respect to the Warehousing 
Series Notes.

          "WAREHOUSING SERIES NOTES" means the Notes issued pursuant to the 
Warehousing Series Indenture.

          "WAREHOUSING SERIES SALE AND SERVICING AGREEMENT" means Amended and 
Restated Sale and Servicing Agreement dated as of July 21, 1998 among the 
Issuer, the Original Issuer, AFL, Bank of America National Trust and Savings 
Association, as Administrative Agent and RCC Agent, Morgan Guaranty Trust 
Company of New York, as DFC Agent, Norwest Bank National Association, as 
Backup Servicer, Collateral Agent and Indenture Trustee, and the Seller.

          "WAREHOUSING SHORTFALL" means, with respect to the Warehousing 
Series and any Distribution Date following the occurrence of an Amortization 
Event, the sum of (1) the excess, if any, of (A) the amount required to be 
distributed on such Distribution Date pursuant to priorities (i) through 
(viii) of Section 4.6(b) of the Warehousing Series Sale and Servicing 
Agreement over (B) the Warehousing Shortfall Available Funds with respect to 
such Distribution Date.

          "WAREHOUSING SERIES SUPPLEMENT" means this Warehousing Series 
Supplement which constitutes a Series Supplement to the Spread Account 
Agreement.

          Section 1.2. RULES OF INTERPRETATION.  The terms "hereof, "herein",
"hereto" or "hereunder," unless otherwise modified by more specific 
reference, shall refer to this Warehousing Series Supplement. Unless 
otherwise indicated in context, the terms "Article," "Section," or "Exhibit" 
shall refer to an Article or Section of, or Exhibit to, this Warehousing 
Series Supplement. The definition of a term shall include the singular, the 
plural, the past, the present, the future, the active and the passive forms 
of such term. A term defined herein and used herein preceded by a Series 
designation or defined in the Servicing Agreement, shall mean such term as it 
relates to the Warehousing Series.

                               ARTICLE II

                     SERIES SUPPLEMENTS; THE COLLATERAL


                                      3
<PAGE>

          Section 2.1. SERIES SUPPLEMENT.  As provided in and subject to the
conditions specified in Section 2.02 of the Spread Account Agreement, the 
parties hereto are entering into this Warehousing Series Supplement with 
respect to the Warehousing Series.

          Section 2.2. GRANT OF SECURITY INTEREST BY AFL AND THE SELLER.

          (a)   In order to secure the performance of the Secured Obligations 
with respect to each Series, the Seller (and AFL, to the extent it may have 
any rights therein) hereby pledges, assigns, grants, transfers and conveys to 
the Collateral Agent, on behalf of and for the benefit of the Secured Parties 
to secure the Secured Obligations (as defined in the Spread Account 
Agreement), a lien on and security interest in (which lien and security 
interest is intended to be prior to all other liens, security interest or 
other encumbrances), all of its right, title and interest in and to the 
following (all being collectively referred to herein as the "Warehousing 
Series Collateral"):

                  (i)  all amounts distributable pursuant to Sections 
     4.6(a)(x) and 4.6(b)(x) of the Warehousing Series Sale and Servicing 
     Agreement (the "Receivables Income") and all rights and remedies that 
     the Seller may have to enforce payment of the Receivables Income whether 
     under the Warehousing Series Servicing Agreement or otherwise;

                  (ii) the Warehousing Series Spread Account established 
     pursuant to Section 3.1 of this Series Supplement and Section 3.01 of 
     the Spread Account Agreement, and each other account owned by the Seller 
     and maintained by the Collateral Agent (including, without limitation, 
     all monies, checks, securities, investments and other documents from 
     time to time held in or evidencing any such accounts);

                  (iii) all of the Seller's right, title and interest in and 
     to investments made with proceeds of the property described in clauses 
     (i) and (ii) above, or made with amounts on deposit in the Warehousing 
     Series Spread Account; and

                  (iv) all distributions, revenues, products, substitutions, 
     benefits, profits and proceeds, in whatever form, of any of the 
     foregoing.

          (b)   In order to effectuate the provisions and purposes of this 
Series Supplement, including for the purpose of perfecting the security 
interests granted hereunder, the Seller represents and warrants that it has, 
prior to the execution of this Series Supplement, executed and filed an 
appropriate Uniform Commercial Code financing statement in Minnesota 
sufficient to ensure that the Collateral Agent, as agent for the Secured 
Parties, has a first priority perfected security interest in all Warehousing 
Series Collateral which can be perfected by the filing of a financing 
statement.


                                      4
<PAGE>

                                 ARTICLE III

                               SPREAD ACCOUNT

          Section 3.1.   ESTABLISHMENT OF WAREHOUSING SERIES SPREAD ACCOUNT.  
On or prior to the Closing Date relating to the Warehousing Series, the 
Collateral Agent shall establish with respect to the Warehousing Series, at 
its office or at another depository institution or trust company, an Eligible 
Account, designated "Spread Account - Warehousing Series - Norwest Bank 
Minnesota, National Association, as Collateral Agent for Financial Security 
Assurance Inc. and another Secured Party" (the "Warehousing Series Spread 
Account").

          Section 3.2.   RELEASE OF FUNDS UPON REPURCHASE.  On the Repurchase 
Date for any Purchased Receivables in respect of which the Collateral Agent 
has received a Notice of Repurchase in the form of Exhibit F to the 
Warehousing Series Sale and Servicing Agreement for Purchased Receivables 
with an aggregate principal balance equal to or greater than $20,000,000 and 
a corresponding executed reconveyance in the form of Exhibit G to the 
Warehousing Series Sale and Servicing Agreement pursuant to Section 2.1(d) 
thereof, the Collateral Agent, upon reconveyance of such Purchased 
Receivables, shall recalculate the Spread Account Maximum Amount for the 
Warehousing Series Spread Account and release funds from the Warehousing 
Series Spread Account in excess of the recalculated Spread Account Maximum 
Amount to the Seller.  In addition, on (i) the closing date of any 
Securitized Offering or (ii) the date  on which the Issuer transfers all or 
substantially all of the Seller Conveyed Property to another Person and in 
connection therewith, the outstanding principal balance of the Notes is 
reduced to zero, the Collateral Agent shall recalculate the Spread Account 
Maximum Amount for the Warehousing Series Spread Account and release funds 
from the Warehousing Series Spread Account in excess of the recalculated 
Spread Account Maximum Amount to the Seller, PROVIDED, in each case, that no 
Insurance Agreement Event of Default shall have occurred and be outstanding 
as of such date.

                               ARTICLE IV

                              MISCELLANEOUS

          Section 4.1.   FURTHER ASSURANCES.  EACH PARTY HERETO SHALL TAKE 
SUCH ACTION AND DELIVER SUCH INSTRUMENTS TO ANY OTHER PARTY HERETO, IN 
ADDITION TO THE ACTIONS AND INSTRUMENTS SPECIFICALLY PROVIDED FOR HEREIN, AS 
MAY BE REASONABLY REQUESTED OR REQUIRED TO EFFECTUATE THE PURPOSE OR 
PROVISIONS OF THIS WAREHOUSING SERIES SUPPLEMENT OR TO CONFIRM OR PERFECT ANY 
TRANSACTION DESCRIBED OR CONTEMPLATED HEREIN.

          Section 4.2.   GOVERNING LAW.  THIS WAREHOUSING SERIES SUPPLEMENT 
SHALL BE GOVERNED BY AND CONSTRUED, AND THE OBLIGATIONS, RIGHTS AND REMEDIES 
OF THE PARTIES HEREUNDER SHALL BE DETERMINED, IN ACCORDANCE WITH THE LAWS OF 
THE STATE OF NEW YORK.


                                      5
<PAGE>

          Section 4.3.   COUNTERPARTS.  This Warehousing Series Supplement 
may be executed in two or more counterparts by the parties hereto, and each 
such counterpart shall be considered an original and all such counterparts 
shall constitute one and the same instrument.

          Section 4.4.   HEADINGS.  The headings of sections and paragraphs 
and the Table of Contents contained in this Warehousing Series Supplement are 
provided for convenience only. They form no part of this Warehousing Series 
Supplement and shall not affect its construction or interpretation.


                                      6
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this 
Warehousing Series Supplement as of the date set forth on the first page 
hereof.

                                   ARCADIA FINANCIAL LTD.


                                   By:
                                      ------------------------------------------
                                        Name:     John A. Witham
                                        Title:    Executive Vice President and
                                                  Chief Financial Officer


                                   ARCADIA RECEIVABLES FINANCE CORP.


                                   By:
                                      ------------------------------------------
                                        Name:     John A. Witham
                                        Title:    Senior Vice President and
                                                  Chief Financial Officer


                                   FINANCIAL SECURITY ASSURANCE INC.


                                   By:
                                      ------------------------------------------
                                                  Authorized Officer


                                   NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION,
                                        as Trustee


                                   By:
                                      ------------------------------------------
                                        Name:
                                        Title:


                                   NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION,
                                        as Collateral Agent


                                   By:
                                      ------------------------------------------
                                        Name:
                                        Title: